This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IBM's Consistency Becomes Key

SAN FRANCISCO -- IBM's (IBM - Get Report) second-quarter results later Thursday should come in healthy across its business lines, with special help from a new mainframe server.

The consensus estimate of analysts polled by Thomson Reuters is for revenue growth of 9% to $25.92 billion and earnings growth of 21% to $1.82 a share, excluding special items.

Shares of IBM have clawed their way back from a low of $97.59 early in the year, closing Wednesday at $125.94, just shy of its one-year high of $129.99, recorded at the end of May.

"It's been a stellar stock this year," says Chuck Jones, a buy-side analyst at Atlantic Trust Private Wealth Management. He lauded its gain of greater than 17% since the end of 2007, while the Nasdaq has lost ground.

The firm acquired 153,000 shares during the first quarter, for a total of nearly 620,000 at the end of March.

"At 13 times forward earnings -- in relation to the market -- it is a bit undervalued," Jones says.

"The company's pretty consistent, and we expect them to be consistent even with some economic news in sectors such as banking," said Chris Foster, lead analyst on IBM at Technology Business Research. "The highlights will be in software and services. Hardware looks to be flat."

But investors also will be looking to IBM's results for the health of the tech sector overall.

"They're a very good barometer for the rest of the industry, because of the nature of longer-term deals," Foster said. "They will be a very good measure of how other companies are going to report."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ACN $107.47 0.35%
HPQ $12.54 -0.79%
IBM $138.46 0.33%
DELL $0.00 0.00%
AAPL $117.82 -0.18%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs